Saturday, June 2, 2012
Friday, June 1, 2012
Reflection
a. I think understanding complexity in economics is going to be most applicable to understanding how the world works. Rivoli's text on the T-shirt's travels illustrate the complexity of markets and the role of politics in shaping markets. The concepts that we learned in class will be helpful to develop a fuller understanding of economics but I think it is most important to understand that globally economics are immensely complicated.
b. I am more interested in learning about markets like the cotton market. It was interesting to me to learn about the factors that have made the American cotton market successful for so long. As an educated citizen I think it is important to understand these interactions and to be able to distinguish what is actually contributing to success.
c. To a student considering taking this class I would advise them to go beyond the requirements of the class and try to learn as much as possible about their specific country. Throughout the quarter I would advise to try to develop an understanding about how economies are related to one another.
b. I am more interested in learning about markets like the cotton market. It was interesting to me to learn about the factors that have made the American cotton market successful for so long. As an educated citizen I think it is important to understand these interactions and to be able to distinguish what is actually contributing to success.
c. To a student considering taking this class I would advise them to go beyond the requirements of the class and try to learn as much as possible about their specific country. Throughout the quarter I would advise to try to develop an understanding about how economies are related to one another.
Tuesday, May 22, 2012
week 8 article
Message to Ankara, Why Turkey is an economy to worry about
http://www.economist.com/node/21552213
This article from the economist puts Turkey as an economy that may be in trouble in the near future. "based on the standard warning signs of trouble—from rapid credit growth and high inflation to a big external deficit—one country stands out. It is Turkey" The article states that Turkey has too much foreign borrowing and a "growing competitiveness problem and a dangerous addiction to the riskiest types of foreign capital." The Economist suggests that Turkey compensate by saving more. Also, the writer says that Turkeys lack of recognition of the problem will be the economies biggest problem.
This article did a relatively poor job of explaining the issue to someone who does not fully understand economics. I think I understand the urge to start saving more and stop relying on foreign money in the current economic situation. With the Greek economy near default and the success of other economies tied to Greece, I understand the potential risk of relying on foreign money.
http://www.economist.com/node/21552213
This article from the economist puts Turkey as an economy that may be in trouble in the near future. "based on the standard warning signs of trouble—from rapid credit growth and high inflation to a big external deficit—one country stands out. It is Turkey" The article states that Turkey has too much foreign borrowing and a "growing competitiveness problem and a dangerous addiction to the riskiest types of foreign capital." The Economist suggests that Turkey compensate by saving more. Also, the writer says that Turkeys lack of recognition of the problem will be the economies biggest problem.
This article did a relatively poor job of explaining the issue to someone who does not fully understand economics. I think I understand the urge to start saving more and stop relying on foreign money in the current economic situation. With the Greek economy near default and the success of other economies tied to Greece, I understand the potential risk of relying on foreign money.
Beware of Greeks Bearing Bonds, Michael Lewis
a. I found this passage to be interesting,
b. Although the Greek economy is very small, it has ties to the success of the rest of Europe. Lewis writes, "if Greece walks away from $400 billion in debt, then the European banks that lent the money will go down, and other countries now flirting with bankruptcy (Spain, Portugal) might easily follow." Although the Greek economy has remained relatively isolated as one of its downfalls, it is still part of a larger European economy and a world economy. Other countries have invested money to help Greece when they believed that Greece's situation was not nearly as bad as it was. So if Greece fails, there is no prospect of repayment and the banks will lose credibility.
c. GDP = C + I + G + NX
If taxes are increased, the public has less money to spend and consumption goes down. Cuts in government spending as well as a decrease in consumption spending will act to decrease the Greek GDP in the short run.
"But this question of whether Greece will repay its debts is really a question of whether Greece will change its culture, and that will happen only if Greeks want to change. I am told 50 times if I am told once that what Greeks care about is “justice” and what really boils the Greek blood is the feeling of unfairness. Obviously this distinguishes them from no human being on the planet, and ignores what’s interesting: exactly what a Greek finds unfair. It’s clearly not the corruption of their political system. It’s not cheating on their taxes, or taking small bribes in their service to the state. No: what bothers them is when some outside party—someone clearly different from themselves, with motives apart from narrow and easily understood self-interest—comes in and exploits the corruption of their system. Enter the monks."
According to Lewis, the Greeks are people who act on self interest and blame the Monks for their problems. From this article it was apparent to me that the Greek citizens including the monks all have a drive for self interest seen from tax evasion from nearly everyone to the monk property tycoons. From the reading I am a little unclear on the morality or legality of the monk's actions. I gathered feeling that the people of Greece may simply blame the monks because they despise their success. I also found the last paragraph to be interesting when Lewis hit on the possibility of Greece being doomed because they do not have a desire to govern themselves and lack the "monk's instints". This situation reminds me of the comparison of cotton industries where the US industry has been so successful due to a innovation driven culture. It seems that regardless of lack of law and enforcement in Greece's finances, what may have actually been worse is the countries lack of ambition to work as a unit.
b. Although the Greek economy is very small, it has ties to the success of the rest of Europe. Lewis writes, "if Greece walks away from $400 billion in debt, then the European banks that lent the money will go down, and other countries now flirting with bankruptcy (Spain, Portugal) might easily follow." Although the Greek economy has remained relatively isolated as one of its downfalls, it is still part of a larger European economy and a world economy. Other countries have invested money to help Greece when they believed that Greece's situation was not nearly as bad as it was. So if Greece fails, there is no prospect of repayment and the banks will lose credibility.
c. GDP = C + I + G + NX
If taxes are increased, the public has less money to spend and consumption goes down. Cuts in government spending as well as a decrease in consumption spending will act to decrease the Greek GDP in the short run.
Friday, May 18, 2012
How Walmart Is Changing China
a. I found it very interesting to look see how low environmental standards were effecting both Walmart's image and the stability of the Chinese people from the viewpoint of the government. The proposal to become a green company was far fetched to both the people of Walmart and the people of China but it became beneficial to both of these parties because of an improvement to their image as polluters.
Another interesting and unfortunately recurring point was made at the end of the article. The point was that although the steps taken by Walmart are beneficial to reduce environmental impact, industrial progress is still being made and in the end, the long run is still unsustainable. After the surprisingly positive account of Walmart, I was hoping for a happy ending, but with most environmental reports on industry, the ending is not so happy.
b. Walmart shows a good example of how multinational corporations, economics and culture interact. The push for higher environmental standards came first from culture. Walmart had a bad reputation with American culture for being environmentally poor and there also was pressure from the Chinese on the government to have higher standards. So culture affected Walmart and then Walmart had a huge effect on the economy by putting pressure on suppliers to change their methods.
c. The popularity of brands like Mcdonalds in the US and our love of fast paced things can illustrate an example of how multinational corporations interact with the economy and culture. I think because our culture is so work orientated and has a desire to be fast paced, organizations like Mcdonalds became hugely succesfull. At the same time I think the economics of Mcdonalds has contributed to its success, namely its cheap prices. So our fast paced culture affected corporations like Mcdonalds by making them hugely successful and Mcdonalds affects the economics of food supply by demanding large volumes of cheap food.
Another interesting and unfortunately recurring point was made at the end of the article. The point was that although the steps taken by Walmart are beneficial to reduce environmental impact, industrial progress is still being made and in the end, the long run is still unsustainable. After the surprisingly positive account of Walmart, I was hoping for a happy ending, but with most environmental reports on industry, the ending is not so happy.
b. Walmart shows a good example of how multinational corporations, economics and culture interact. The push for higher environmental standards came first from culture. Walmart had a bad reputation with American culture for being environmentally poor and there also was pressure from the Chinese on the government to have higher standards. So culture affected Walmart and then Walmart had a huge effect on the economy by putting pressure on suppliers to change their methods.
c. The popularity of brands like Mcdonalds in the US and our love of fast paced things can illustrate an example of how multinational corporations interact with the economy and culture. I think because our culture is so work orientated and has a desire to be fast paced, organizations like Mcdonalds became hugely succesfull. At the same time I think the economics of Mcdonalds has contributed to its success, namely its cheap prices. So our fast paced culture affected corporations like Mcdonalds by making them hugely successful and Mcdonalds affects the economics of food supply by demanding large volumes of cheap food.
Sunday, May 13, 2012
seventh week article pos
Asian giants strike deal to start talks on three-way trade pact
China, Japan and South Korea area planning to make a three-way trade pact and to agree on a reciprocative investment treaty. The larger future goal is that of a free trade agreement. South Korea's president stated that these three countries are essential to helping the global economy economy recover. Partly because of economic and political disputes between the countries, the process will probably be lengthy. If the South Korean president is correct, then Turkey will benefit from this East Asia trade agreement. Since China, Japan, and South Korea make up such a large market of suppliers of goods and services, the agreement may help countries that import, like Turkey, by making the goods and services cheaper. Free trade generally has a trend of lowering costs by competition.
The Wall Street Journal wrote,
The three leaders also signed a trilateral investment agreement, which Wen described as "the first important legal document" between the three countries' economies. The agreement will provide a legal framework to "assure investors of the three countries...when they suffer damage in their host countries," South Korea's Lee said.
This increase in safe investment will prove to help the economies in the future by encouraging investment. When investment goes up, GDP goes up. The WSJ also reports that China is also making free trade agreements with other countries globally. This global economy should benefit Turkey if it is on board. If Turkey is a country that stays out of free trade agreements like these, I think it will fall behind as others benefit from lower costs.
http://online.wsj.com/article/SB10001424052702304371504577402773076428202.html
http://www.hurriyetdailynews.com/asian-giants-strike-deal-to-start-talks-on-three-way-trade-pact.aspx?pageID=238&nID=20609&NewsCatID=344
sixth week article post (late)
Turkish Title Winner Celebrates Boom in Product Sales
http://www.hurriyetdailynews.com/turkish-title-winner-celebrates-boom-in-product-sales.aspx?pageID=238&nID=20662&NewsCatID=345
Galatasaray, a Turkish professional Soccer Club based in Istanbul won the Turkish Leage title and has now seen a jump in team related products with total turnover increasing by 250 percent. This is a simple case of supply and demand. Demand for Galatasaray related products is directly related to the performance of the club, and with a successful year leading up to a championship, demand has become very high. I imagine that with all sports teams, there is a base of faithful fans who will always be customers, but that the most profits are on fans who buy products for teams that are successful at that time. This must be why coaches are payed so heavily for being successful, because their success leads to huge economic success for the club.
http://www.hurriyetdailynews.com/turkish-title-winner-celebrates-boom-in-product-sales.aspx?pageID=238&nID=20662&NewsCatID=345
EGT Consulting: Vehicle Market Executive Summary
There is potential demand for scooters from the working population, potential demand for sedans from the more wealthy population, and potential demand for limousines from the super wealthy, businesses, and governmental organizations. All three motor vehicles will be most successful in urban areas, specifically Istanbul, Ankara and similar cities. Shipping to Turkey will be seamless and efficient as it is already a huge industry. The economy of Turkey shows promise to grow and also expand its container shipping capacity, making the market for all three motor vehicles bigger in the future. The market for limousines will probably remain unchanged in the future due to its specific consumers. Turkey has shown an ability to return to stability from periods of unrest and looks to be a safe environment to conduct businesses. Starting a business in Turkey will be relatively yet costly (percentage of income per capita) (compared to OECD economies).
Wednesday, May 9, 2012
Reinventing the Bazaar: A natural History of Markets by John McMillan. Chapter 4
A. I found it interesting that McMillan made the point that when information is not free, prices will be set high but not because of collusion. Prices stay high because of lack of information and the merchants do not have a need to collude. These prices are also kept high by search costs which make searching for lower costs not worth it. I found it surprising that McMillan referred to the market merchants as a "little monopolist" that pulls in large profits because I have always thought of merchants as poor. I can recall experience with search costs and evaluation costs while trying to shop in the Market in Istanbul. I recall my family being approached by a man in the market who persuaded us to come look a shop. He led us deep into the market to a shop that we would have never bought from because we would have ran into countless other shops on the way to that one. The man serves as matchmaker to reduce search costs. But at the same time the man didn't necessarily take us to the cheapest shop, we would have little way to know. So really the man was exploiting the lack of information in the Turkish Open market.
B. By transaction costs, the author is referring the costs of evaluation of search present in the market. These costs come together and prevent the consumer from doing extensive research of the price levels in the market. This keeps price levels high. For example it is very costly in time and energy to navigate the closed market in Turkey.
C. Imperfect information leads to market failures of efficiency. In the example of the market, it is inefficient to look for information so prices are higher than the market price would be if there was perfect information. In the market, the consumer loses because prices are much higher than they should be. Also, Mcmillan describes how the suppliers become losers because of lack of info if they try to lower their price. Because consumers will not recognize the price advantage on a wide scale, the merchant will lose money. So there is a actual incentive to keep prices high besides trying to overcharge tourists.
B. By transaction costs, the author is referring the costs of evaluation of search present in the market. These costs come together and prevent the consumer from doing extensive research of the price levels in the market. This keeps price levels high. For example it is very costly in time and energy to navigate the closed market in Turkey.
C. Imperfect information leads to market failures of efficiency. In the example of the market, it is inefficient to look for information so prices are higher than the market price would be if there was perfect information. In the market, the consumer loses because prices are much higher than they should be. Also, Mcmillan describes how the suppliers become losers because of lack of info if they try to lower their price. Because consumers will not recognize the price advantage on a wide scale, the merchant will lose money. So there is a actual incentive to keep prices high besides trying to overcharge tourists.
Friday, May 4, 2012
Friday May 4
a.) I found it very interesting that the fez is such a taboo to Turkish people but is yet still a commonly seen item that is sold to tourists. I was actually unaware that the Fez was looked down upon or even illegal to the people of Turkey. This seems similar to the situation of the hijab in Turkey which I think I am more familiar with. Ataturk also made the hijab illegal but since then has once again became legal (maybe not in government jobs etc, Im not sure). While in Turkey, the majority of Turks do not wear a hijab (or at least the places I have been, which may be more liberal then others) but you will see a few. It seems that if the fez has remained illegal, that the hijab would have also.
b.) The reading illustrates how economics and culture can interact because we see how it is shameful for Turks to sell a fez, yet the demand and profit possibility overrides the shame. Also, the whole situation of Pomegranate transforming from a historically great and culturally proud place to a tourist serving city shows how economics can transform culture, at least on the outside, for economic success.
c.) My study abroad destination is Turkey and a few tourist destinations are Istanbul, and as we have seen, Pomegranate. People are drawn to Istanbul because it is a national urban metropolis that also has rich history and beautiful scenery. Located on the Bosphorus, Istanbul is a great destination for Tourists because of its seaside location, old castles, religious centers, and bustling markets. Also, Istanbul is very tourist friendly but as I read about with Pomegranate, this may be because of tourism itself.
Sunday, April 29, 2012
Part II April 30
a. The history of the location of the textile industry illustrates that the global economy is ever changing and that success may only be temporary, and in the case of textile production, success is most likely temporary. Success in the textile industry has been due to the exploitation of the “poor and powerless” in a “race to the bottom.” The shift of British dominance to New England to the American South to Asia illustrates the competitiveness of the global economy that in this case depended on a supply of cheap eager labor.
b. Rivoli does a great job to present both positive and negative consequences of industrialization and definitely changed my opinion. Negative consequences were more obvious and included pollution and poor working conditions. On pg 102, “Female cotton workers in prewar Japan were referred to as “birds in a cage,” given their grueling schedules- 12-hour days and two days off per month.” On pg 89, “of the 20 cities in the world with the highest levels of air pollution, 16 are in China, and the majority of the water in the country’s largest river systems is unsuitable for human contact.” On the other hand, industrialization has shown to be an improvement for laborers and also proves to lead to cleaner environmental conditions as richer economies are more willing to spend on cleaner air and water. On pg 119, “The countries that have lost the race to the bottom are some of the most advanced economies in the world today, but they share a common heritage in the cotton mill and the sweatshop as the ignition switch for the urbanization, industrialization, and economic diversification that followed, as well as for the economic and social liberation of women from the farm.” I now think that industrialization is a necessary and inevitable and in the long run will be beneficial. I still think that improvements can be made to the “bottom”, but improvements have already been seen and I imagine that they will continue.
b. Rivoli does a great job to present both positive and negative consequences of industrialization and definitely changed my opinion. Negative consequences were more obvious and included pollution and poor working conditions. On pg 102, “Female cotton workers in prewar Japan were referred to as “birds in a cage,” given their grueling schedules- 12-hour days and two days off per month.” On pg 89, “of the 20 cities in the world with the highest levels of air pollution, 16 are in China, and the majority of the water in the country’s largest river systems is unsuitable for human contact.” On the other hand, industrialization has shown to be an improvement for laborers and also proves to lead to cleaner environmental conditions as richer economies are more willing to spend on cleaner air and water. On pg 119, “The countries that have lost the race to the bottom are some of the most advanced economies in the world today, but they share a common heritage in the cotton mill and the sweatshop as the ignition switch for the urbanization, industrialization, and economic diversification that followed, as well as for the economic and social liberation of women from the farm.” I now think that industrialization is a necessary and inevitable and in the long run will be beneficial. I still think that improvements can be made to the “bottom”, but improvements have already been seen and I imagine that they will continue.
c. A passage that I found interesting was the analysis of the economic impact of a t-shirts production. On one hand there is “pesticides, herbicides, water, bleach, energy, fuel, and chemical dyes” involved in the production of a t-shirt. But a study revealed, “the impacts of the “consumer use” phase of the T-shirts life dwarfed the impacts of production and transportation.” This was interesting to me because it is easy to push responsibility of environmental issues to others that seems to be larger contributors, like the textile industry, when in reality we play a large part as consumers. Another interesting aspect was the environmental Kuznets curve, which suggests that industrialization is part of the environment solution rather than the problem. This was a new idea to me, as I too had assumed that industry was the problem. The relationship between environmental quality and industrialization, like so many other economic and ecological relationships, are much more complex then they seemed. Now that I see that ecological quality needs industrialization in this developing world, it will be important to raise the bottom in the “race to the bottom” so as to keep environmental degradation in the process of making a country developed at a minimum.
Friday, April 27, 2012
The World is Spiky
a.) The author does not agree that the world is becoming a flat place, but rather sees the world as an aggregated spiky place. Instead of the world becoming a flat, fair competitive market, Florida sees the world as divided between flat areas and spiky areas. The spiky areas are successful, innovative areas that are more connected than spikes are connected to flat areas in their own countries. Spikes, in Florida's spiky world, are highly populated, productive, and innovative areas.
b.) This relates to central place theory because it shows how societies clump together around huge urban areas. It also relates to the idea in the central place theory that larger cities, or greater spikes, can provide services that lesser areas cannot. Florida touches on this when he talks about how innovators will clump together because of productivity advantages, economies of scale, and knowledge spillovers.
c.) Istanbul has a population of 13 million, is an international hub for air travel, and lies on the border of Europe of Asia, qualifying the city as a National Metropolis. Gebze Turkey is an industrial city of about 280 thousand people located about 30 miles away from Istanbul. I would classify Gebze as a small city. Dilovasi is an interesting town located near Gebze that is recognized for its harsh industrialization and pollution. Dilovasi has a population of about 50,000. Ankara is also in the category of a National metropolis but I would put it lower than Istanbul because of its lower population and located at the middle of the nation. The area that my grandfather grew up on is a small farming community that could be considered a Hamlet. I couldn't find the name of the town, which is testament to its size.
b.) This relates to central place theory because it shows how societies clump together around huge urban areas. It also relates to the idea in the central place theory that larger cities, or greater spikes, can provide services that lesser areas cannot. Florida touches on this when he talks about how innovators will clump together because of productivity advantages, economies of scale, and knowledge spillovers.
c.) Istanbul has a population of 13 million, is an international hub for air travel, and lies on the border of Europe of Asia, qualifying the city as a National Metropolis. Gebze Turkey is an industrial city of about 280 thousand people located about 30 miles away from Istanbul. I would classify Gebze as a small city. Dilovasi is an interesting town located near Gebze that is recognized for its harsh industrialization and pollution. Dilovasi has a population of about 50,000. Ankara is also in the category of a National metropolis but I would put it lower than Istanbul because of its lower population and located at the middle of the nation. The area that my grandfather grew up on is a small farming community that could be considered a Hamlet. I couldn't find the name of the town, which is testament to its size.
Monday, April 23, 2012
Turkey Transportation
1. Water Transportation
Turkey is a peninsula bordering the Mediterranean and Black seas, so many ports for water transportation line the coasts. According to Cerrahogullari there are about 25 ports in the Aegean and Mediterranean seas alone with more on the other side of the country. I couldn't find specific data on the busiest ports in Turkey but a few sources reported port of Istanbul and Izmir to be the most busy. According to World Port Source both of these ports have container liner service but I am unsure if this is the same thing as Post Panamax capable.
2. Land Transportation
Railroads in Turkey are owned by the government and are titled the State Railways of the Turkish Republic (TCDD). As the 22nd largest railway system in the world, The TCDD reports carrying 17,105,353 tonnes of freight and 7,118,699 passenger-km in 2009.
3. Air
Turkey has about 19 international airports, with large airports in Istanbul and Ankara. Turkey also have about equal numbers of domestic and Military airports.
Turkey is a peninsula bordering the Mediterranean and Black seas, so many ports for water transportation line the coasts. According to Cerrahogullari there are about 25 ports in the Aegean and Mediterranean seas alone with more on the other side of the country. I couldn't find specific data on the busiest ports in Turkey but a few sources reported port of Istanbul and Izmir to be the most busy. According to World Port Source both of these ports have container liner service but I am unsure if this is the same thing as Post Panamax capable.
2. Land Transportation
Railroads in Turkey are owned by the government and are titled the State Railways of the Turkish Republic (TCDD). As the 22nd largest railway system in the world, The TCDD reports carrying 17,105,353 tonnes of freight and 7,118,699 passenger-km in 2009.
3. Air
Turkey has about 19 international airports, with large airports in Istanbul and Ankara. Turkey also have about equal numbers of domestic and Military airports.
Friday, April 20, 2012
The Box response
a.) I found it most interesting how drastically the shipping containers have shifted costs in transportation. "It is better to assume that moving goods is essentially costless than to assume that moving goods is an important component of the production process." Before the container, such a statement was unimaginable. I think this is especially important because it is a huge shift from costly transportation to essentially costless transportation. I am a little confused at to how some theories do not account shipping containers as very important.
b.) Levinson sees the development of the shipping container as a vital component to the expansion of the global economy. He talks about how the development of the shipping container may not have immediately led to changes in the economy because it took some time for economies to get efficient at using the new technology (loading, unloading, computer use etc.). Levinson thinks that the shipping containers led to the ability to trade globally without the costs of long distance transportation.
c.) The short impact of the shipping container may have had little impact on the national economy and may have had a detrimental impact on employment as less workers were needed for transportation. In the long run, national income should increase as production and trade increases. Employment should also increase from the increased production.
b.) Levinson sees the development of the shipping container as a vital component to the expansion of the global economy. He talks about how the development of the shipping container may not have immediately led to changes in the economy because it took some time for economies to get efficient at using the new technology (loading, unloading, computer use etc.). Levinson thinks that the shipping containers led to the ability to trade globally without the costs of long distance transportation.
c.) The short impact of the shipping container may have had little impact on the national economy and may have had a detrimental impact on employment as less workers were needed for transportation. In the long run, national income should increase as production and trade increases. Employment should also increase from the increased production.
Friday, April 13, 2012
Rivoli Part 1 April 13
a.) The markets of cotton described by Rivoli are greatly different from idealized, pure market theory. The markets have been manipulated by culture, government subsidies, chemical engineering, and more. One of the most interesting aspects of the cotton market to me is how the success of the cotton industry in the US is due to the avoidance and control of the labor market. Cotton farmers of the American west have seen huge benefits from practices such as sharecropping, government regulations, and slavery that have allowed them to exploit cheap labor to their unpredictable needs. Rivoli exposes that it is much more than just governmental subsidies that are responsible for the historical and continual dominace of the American cotton industry.
b.) An example of culture interacting with economics is how the American culture has supported and encouraged innovation while the Chinese cotton farmers have to incentive to innovate. This is one of the underlying causes besides subsidies that have contributed to the success of American cotton.
c.) As I previously knew nothing about the American cotton industry or any cotton industry, almost everything in this first section of the book surprised me. What surprised me most was the stability that American cotton farmers experience. They are receiving substantially more money per pound off cotton than foreign farmers but more importantly have insurance nets that save them not only from falling prices but also from falling yields. It was striking to read about how an American cotton farmer can shrug off a weather disaster to their crop while farmers elsewhere may be destroyed financially and resort to suicide. I think it is important, when examining the fairness of subsidies, to not just look at monetary value but also the value of safety provided to American cotton farmers.
b.) An example of culture interacting with economics is how the American culture has supported and encouraged innovation while the Chinese cotton farmers have to incentive to innovate. This is one of the underlying causes besides subsidies that have contributed to the success of American cotton.
c.) As I previously knew nothing about the American cotton industry or any cotton industry, almost everything in this first section of the book surprised me. What surprised me most was the stability that American cotton farmers experience. They are receiving substantially more money per pound off cotton than foreign farmers but more importantly have insurance nets that save them not only from falling prices but also from falling yields. It was striking to read about how an American cotton farmer can shrug off a weather disaster to their crop while farmers elsewhere may be destroyed financially and resort to suicide. I think it is important, when examining the fairness of subsidies, to not just look at monetary value but also the value of safety provided to American cotton farmers.
Sunday, April 8, 2012
Turkey ranks low in environmental index
1. In a recent 2012 environmental index, Turkey ranked lower than 92 percent of the countries involved. The Environmental Performance Index is a method of quantifying and numerically benchmarking the environmental performance of a country’s policies. The article stated that Turkey has a "rich natural environment" but unfortunately that environment is "being destroyed."
http://www.hurriyetdailynews.com/turkey-ranks-low-in-environmental-index.aspx?pageID=238&nID=13386&NewsCatID=340
2. This issue will prove to be not only an environmental concern but also a long term economic concern if Turkey's poor environmental standards are not addressed. An effective environmental policy is beneficial to an economy in the long run because protection of the environment leads to better long lasting resources. Although aversion of environmental policies can lead to short run benefits because of more possible production, in the long run degraded natural resources will hurt the economy.
3. I would suggest that Turkey improve their environmental policies as soon as practicably possible because of the long run benefits. I would also suggest investing in technology that will increase the efficiency of natural resource use. Policies that encourage efficient and clean use of resources will protect Turkey's resources while also promoting economic growth.
http://www.hurriyetdailynews.com/turkey-ranks-low-in-environmental-index.aspx?pageID=238&nID=13386&NewsCatID=340
2. This issue will prove to be not only an environmental concern but also a long term economic concern if Turkey's poor environmental standards are not addressed. An effective environmental policy is beneficial to an economy in the long run because protection of the environment leads to better long lasting resources. Although aversion of environmental policies can lead to short run benefits because of more possible production, in the long run degraded natural resources will hurt the economy.
3. I would suggest that Turkey improve their environmental policies as soon as practicably possible because of the long run benefits. I would also suggest investing in technology that will increase the efficiency of natural resource use. Policies that encourage efficient and clean use of resources will protect Turkey's resources while also promoting economic growth.
Friday, April 6, 2012
Social Responsibility of Business
a.)Friedman elaborates on the ideas of social responsibility and those of a corporation. Friedman seems to side with a socialist view that businesses are not capable of making responsible social decisions and that decisions of allocation, price, etc should be decided by governments. He talks about a trade off for businesses that involves doing good but only at the expense of ones business. Friedman explains why he thinks that the idea of social responsibility is used to cloak decisions that are detrimental. The problem is, businesses have one true responsibility and that is to maximize profits.
b.) The Core Cultural Values that I think are most important to Friedman are Collectivism, Equality, Monochromatic Time, Stability, and Directness.
c.) I think that there is definitely a conflict between business and social responsibility. Unfortunately businesses do have a responsibility to make profits. This is most apparent to me when looking at pollution. It is a social responsibility to protect the environment but this comes at a cost to many businesses. Fortunately, businesses to give in to social pressure, yet this may not be from their own decision or 'responsibility'.
b.) The Core Cultural Values that I think are most important to Friedman are Collectivism, Equality, Monochromatic Time, Stability, and Directness.
c.) I think that there is definitely a conflict between business and social responsibility. Unfortunately businesses do have a responsibility to make profits. This is most apparent to me when looking at pollution. It is a social responsibility to protect the environment but this comes at a cost to many businesses. Fortunately, businesses to give in to social pressure, yet this may not be from their own decision or 'responsibility'.
Tuesday, April 3, 2012
Richard Shweder
a.) Richard Schweder outlined three prophecies of new world order and talked about the history and likelihood of each. He introduced his lecture by talking about posing the questions: Are cultural practices that aren't "liberal" ok such as poligamy? Could all of the worlds diversity actually live together in one nation? How far should tolerance go?
The first prophecy is the Washington Consensus. What I took away from this section of his talk was that after the Cold War it became popular to think that civilizations have and should have the tendency to move from savagery towards an ideal civilization and that the United States/ Western Civilization is the most successful civilization. It was very interesting to hear that the popularity of this theory went out but now it is back. This ideal is reflected in the opinion of Americans to expect other countries to be waiting for us to invade. I think many Americans are guilty of thinking that other countries are eager for a American like democratic system.
The second prophecy is related to globalization and a world convergence. Schweder stated that a 'narrowly conceived global economy' may fail again like it did leading up to WWI. Instead a separate but equal mind set on a global scale may be more appropriate. As we have seen, the spread of free trade and private property rights do not also spread ideals or customs etc. So other societies do not have to become Americans to enjoy the benefits of technology etc.
The third prophecy was most interesting because it was Schweder credited as being the most likely outcome for the future. He talked about how modern society has been around for a relatively short period of time and that the majority of human history has been in empires. Using the ottoman empire as an example of an inclusive, accepting empire with a weak center state, Schweder predicted that the world may tend to this sort of society in the future.
b.) From this talk, I think that I can better predict the direction of global change. If there are efforts to try and create a convergence of global economies I might look for collapse. As in WWI, this sort of attempt may again lead to barriers to immigration and resilience to cultural convergence. If I see a pattern of larger culturally inclusive societies then I would expect there to be a trend toward empire like societies. So cultural acceptance and the degree to which there is effort to converge societies seem to be indicators of global change.
c.) Culture does seem to be important in the outcome of economies. One example that we talked about is the culture that traded with each other by leaving goods at a designated location and picking up other goods that by agreement had been considered a fair trade. This sustenance economy is much different than the success driven economy of the US. I think that the importance of culture in economic outcomes can be seen in the failure of a global economy where culture would at least in part be lost.
The first prophecy is the Washington Consensus. What I took away from this section of his talk was that after the Cold War it became popular to think that civilizations have and should have the tendency to move from savagery towards an ideal civilization and that the United States/ Western Civilization is the most successful civilization. It was very interesting to hear that the popularity of this theory went out but now it is back. This ideal is reflected in the opinion of Americans to expect other countries to be waiting for us to invade. I think many Americans are guilty of thinking that other countries are eager for a American like democratic system.
The second prophecy is related to globalization and a world convergence. Schweder stated that a 'narrowly conceived global economy' may fail again like it did leading up to WWI. Instead a separate but equal mind set on a global scale may be more appropriate. As we have seen, the spread of free trade and private property rights do not also spread ideals or customs etc. So other societies do not have to become Americans to enjoy the benefits of technology etc.
The third prophecy was most interesting because it was Schweder credited as being the most likely outcome for the future. He talked about how modern society has been around for a relatively short period of time and that the majority of human history has been in empires. Using the ottoman empire as an example of an inclusive, accepting empire with a weak center state, Schweder predicted that the world may tend to this sort of society in the future.
b.) From this talk, I think that I can better predict the direction of global change. If there are efforts to try and create a convergence of global economies I might look for collapse. As in WWI, this sort of attempt may again lead to barriers to immigration and resilience to cultural convergence. If I see a pattern of larger culturally inclusive societies then I would expect there to be a trend toward empire like societies. So cultural acceptance and the degree to which there is effort to converge societies seem to be indicators of global change.
c.) Culture does seem to be important in the outcome of economies. One example that we talked about is the culture that traded with each other by leaving goods at a designated location and picking up other goods that by agreement had been considered a fair trade. This sustenance economy is much different than the success driven economy of the US. I think that the importance of culture in economic outcomes can be seen in the failure of a global economy where culture would at least in part be lost.
Sunday, April 1, 2012
April 2, Turkey Statistics
1. Resources
Turkey straddles the Europe Asia border and is slightly larger than Texas in area. Turkey is peninsula like country that borders the Black, Aegean, and Mediterranean seas. The territory of Turkey is more than 1,600 kilometres (1,000 mi) long and 800 km (500 mi) wide, with a roughly rectangular shape. About 11% of the land is cultivated farm land. The traditional agricultural sector still accounts for 25% of employment but the Turkish economy is increasingly driven by industry and service. Turkey's main crop is wheat and also has high deposits of boron salts (72% of world) and is a global leader in hazelnuts and tobacco. Turkey is a net importer of oil and gas. The work force in Turkey is 27.43 million.
2. International Trade
Exports from Turkey measure at about 133 billion and include apparel, food, textiles, metal, and transport equipment. Germany, the UK, France, Italy and Iraq are among top importers of Turkish goods. Automotive, construction, and electronic industries are rising in exports.
Imports measure at about $212.2 billion and include machinery, chemicals, semi-finished goods, and fuels. Russia, Germany, China, The US, Italy and France are among the countries from whom Turkey imports most.
Turkey straddles the Europe Asia border and is slightly larger than Texas in area. Turkey is peninsula like country that borders the Black, Aegean, and Mediterranean seas. The territory of Turkey is more than 1,600 kilometres (1,000 mi) long and 800 km (500 mi) wide, with a roughly rectangular shape. About 11% of the land is cultivated farm land. The traditional agricultural sector still accounts for 25% of employment but the Turkish economy is increasingly driven by industry and service. Turkey's main crop is wheat and also has high deposits of boron salts (72% of world) and is a global leader in hazelnuts and tobacco. Turkey is a net importer of oil and gas. The work force in Turkey is 27.43 million.
2. International Trade
Exports from Turkey measure at about 133 billion and include apparel, food, textiles, metal, and transport equipment. Germany, the UK, France, Italy and Iraq are among top importers of Turkish goods. Automotive, construction, and electronic industries are rising in exports.
Imports measure at about $212.2 billion and include machinery, chemicals, semi-finished goods, and fuels. Russia, Germany, China, The US, Italy and France are among the countries from whom Turkey imports most.
| Exchange Rate |  |
Turkish liras per US dollar -1.668 3. National Income Accounts Ivestment spending in Turkey (2010) is 20.365 % of total GDP. Government spending in Turkey (2010) is 34.85 % of total GDP. | |
Thursday, March 29, 2012
Turkey Statistics
1. GDP - $1.026 Trillion (PPP)
2. GDP Per Capita - $14,600 (PPP)
3. Life Expectancy - 72.77 years
4. Poverty Rate - 16.9%
5. Literacy Rate - 87.4%
6. Unemployment Rate - 10.3%
7. Inflation - 7.8%
Courtesy of CIA World Factbook
2. GDP Per Capita - $14,600 (PPP)
3. Life Expectancy - 72.77 years
4. Poverty Rate - 16.9%
5. Literacy Rate - 87.4%
6. Unemployment Rate - 10.3%
7. Inflation - 7.8%
Courtesy of CIA World Factbook
Tuesday, March 27, 2012
"Why Did Human History Unfold Differently on Different Continents For the Last 13,000 Years?"
a) Diamond's takes a look at what factors my have contributed to the current differences between societies of different continents and points to direction of axis and domesticated plants and animals as two main factors that cause further differentiation between societies. If a society is able to domesticate large animals and crops they have been more successful in war and are more able to focus on innovation and technology since agriculture is more efficient. The domestication of animals also led to diseases that could jump to a dense human population. This proved very influential in the european's war against the natives. Another point was that of innovation and cultural loss. Diamond pointed out that most useful ideas come from out side of a society and that a larger society is more likely to progress into useful ideas while a small isolated population such as Tasmania may be more likely to let go of advantageous practices. In a closing point, Diamond points out that continental environments, not biological differences are attributable to differences in societies.
b) Diamond identifies direction of axis, domesticated animals and plants, writing, technology, political structure and number of competing societies.
c) Now that we know important determinants to a societies success we can apply this to the global economy, especially developing nations. I think these ideas are most applicable to underdeveloped countries where we could look to develop agriculture and food surplus through domesticated crops and animals. This will then lead to increase in technology and innovation. What has worked in the past will most likely work in the future for developing countries.
b) Diamond identifies direction of axis, domesticated animals and plants, writing, technology, political structure and number of competing societies.
c) Now that we know important determinants to a societies success we can apply this to the global economy, especially developing nations. I think these ideas are most applicable to underdeveloped countries where we could look to develop agriculture and food surplus through domesticated crops and animals. This will then lead to increase in technology and innovation. What has worked in the past will most likely work in the future for developing countries.
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